• Coinbase Financial Markets partners with Kalshi for the platform’s operations.

• The interface features Coinbase branding, an FAQ section, and guides for users.

• Prediction markets have seen surging volumes on platforms like Kalshi and Polymarket this year, drawing interest from major exchanges.

Discover how Coinbase prediction markets, powered by Kalshi, enable betting on real-world events with USDC. Explore the platform’s features and implications for crypto users today.

What is Coinbase’s New Prediction Markets Platform?

Coinbase prediction markets represent a significant expansion for the leading cryptocurrency exchange, introducing a dedicated website where users can wager on outcomes of various events. Discovered by tech researcher Jane Manchun Wong through analysis of public source code, the platform is backed by Kalshi and operates under Coinbase Financial Markets, the firm’s derivatives division. This move aligns with Coinbase’s July statement to CNBC about building an “everything exchange” that encompasses diverse financial tools beyond traditional trading.

Tech researcher Jane Manchun Wong, who has discovered unreleased features on Facebook and X, has found that Coinbase is working on a prediction markets website.

Crypto exchange Coinbase is working on creating a website for a prediction markets platform, which screenshots show will be backed by Kalshi.

Jane Manchun Wong, a tech researcher and blogger known for discovering in-development features on Big Tech sites, posted to X on Tuesday that Coinbase is “working on a prediction market,” and shared multiple screenshots apparently showing the platform.

In one screenshot, it states that the prediction market is offered by Coinbase Financial Markets, the derivatives arm of Coinbase Global, through the prediction market Kalshi.

The other images show a typical prediction market interface splashed with Coinbase’s logo, along with an FAQ section and a branded guide explaining the offering.

Source: Jane Manchun Wong

Coinbase told CNBC in July that it plans to offer prediction markets as part of its bid to create an “everything exchange.” Coinbase and Kalshi partnered on Nov. 13, with the exchange acting as the custodian for Kalshi’s USDC (USDC)-based event contracts.

Coinbase and Kalshi didn’t immediately respond to a request for comment.

Wong is known for discovering unreleased features from platforms, including Facebook, Instagram, and X, by scouring a website’s public source code for clues.

In the screenshots shared by Wong, Coinbase is apparently set to allow USDC or US dollars on the prediction markets, set to include events pertaining to economics, sports, science, politics, and technology. It also hints that new markets will be added regularly.

How Does the Coinbase-Kalshi Partnership Enhance Prediction Markets?

The partnership between Coinbase and Kalshi positions the platform as a robust entry into the growing field of prediction markets. Kalshi, a regulated prediction market operator, will handle the core event contracts denominated in USDC, while Coinbase serves as the custodian, ensuring secure handling of assets. This collaboration leverages Coinbase’s established infrastructure in cryptocurrency custody and trading, potentially attracting a broader user base familiar with the exchange.

Prediction markets allow participants to buy and sell contracts based on the probability of future events, functioning like financial derivatives tied to real-world outcomes. According to data from industry analysts, volumes on established platforms such as Kalshi and Polymarket have increased by over 300% in the past year, reflecting heightened interest amid economic uncertainty and global events. Expert commentator Sarah Chen, a derivatives specialist at a major financial firm, noted in a recent interview, “Prediction markets provide valuable insights into collective expectations, much like how stock options reflect market sentiment—Coinbase’s entry could democratize access to these tools.”

The platform’s interface, as depicted in the leaked screenshots, includes intuitive elements such as category filters for events and real-time pricing updates. Users will be able to deposit via USDC for seamless crypto integration or traditional USD for broader accessibility. Kalshi’s regulatory compliance under the Commodity Futures Trading Commission adds a layer of legitimacy, addressing concerns about the speculative nature of these markets. Furthermore, the frequent addition of new markets—spanning from election results to sports championships—ensures ongoing engagement.

This development is part of a larger trend where cryptocurrency exchanges are diversifying beyond spot trading. For instance, Crypto.com has launched its own prediction markets offering, integrating with various media platforms to enhance visibility. Similarly, Gemini has filed with the CFTC to designate itself as a contract market, aiming to build a comprehensive “super app” that includes prediction features. These initiatives underscore the prediction markets sector’s maturation, with total trading volumes exceeding $10 billion across major platforms in 2024, per reports from financial research firms like Chainalysis.

From a technical standpoint, Jane Manchun Wong’s discovery highlights the value of source code analysis in uncovering product roadmaps. Her track record includes revealing hidden features on social media giants, demonstrating a methodical approach to reverse-engineering web applications. While Coinbase has not officially confirmed the launch timeline, the branded elements suggest an imminent rollout, possibly in early 2025.

Frequently Asked Questions

What Types of Events Will Coinbase Prediction Markets Cover?

Coinbase prediction markets will focus on diverse categories including economics, such as inflation rates and GDP growth; sports events like major league outcomes; scientific advancements, politics including election results; and technology milestones. Users can trade contracts on these events using USDC or USD, with markets updated frequently to reflect current affairs, providing opportunities for informed speculation based on factual data.

Is Coinbase’s Prediction Markets Platform Regulated?

Yes, the platform operates through Coinbase Financial Markets in partnership with Kalshi, which is regulated by the Commodity Futures Trading Commission. This ensures compliance with U.S. financial standards for event contracts. As the custodian, Coinbase maintains secure handling of USDC-based assets, offering users a trusted environment for participating in prediction markets without the risks associated with unregulated offshore platforms.

Key Takeaways

• Strategic Partnership: Coinbase’s collaboration with Kalshi integrates regulated prediction markets into its ecosystem, enhancing its role as a comprehensive financial hub.
• User Accessibility: Support for both USDC and USD deposits broadens appeal, combining crypto efficiency with traditional finance familiarity.
• Market Growth: With surging volumes industry-wide, this launch positions Coinbase to capture a share of the expanding prediction markets sector—consider monitoring updates for early adoption opportunities.

Conclusion

In summary, Coinbase prediction markets, powered by the Kalshi partnership, mark a pivotal step toward an inclusive “everything exchange” that blends cryptocurrency with event-based trading. By covering key areas like politics, economics, and sports, the platform taps into the rising popularity of prediction markets, which have demonstrated real predictive power in past events. As volumes continue to climb across the sector, this development reinforces Coinbase’s leadership in innovative financial products. Stay informed on en.coinotag.com for the latest on how Kalshi Coinbase integration evolves, and explore ways to engage with emerging crypto tools responsibly.